To meet their fiduciary responsibilities, the OPEB Trustees are seeking an investment advisor to advise and make recommendations on its investment program. The Trustees expect the advisor selected through this RFP to provide independent, objective, creative and proactive input to its decision-making process. The advisor may be required to perform any or all of the following tasks: A. Investment Policies and Asset Allocation Structure 1. Assist in development of a comprehensive written Investment Policy Statement and investment guidelines for the Trust. Review annually and recommend changes, if appropriate. 2. Assist in developing an appropriate investment management structure for the Trust and each asset class. 3. Coordinate with the Plans’ actuary to incorporate asset/liability needs of the Plans, actuarial assumed rate of return and capital market assumptions. B. Investment Manager & Fund Selection 1. Conduct manager and fund searches. Assist in establishing appropriate qualitative and quantitative selection criteria for reviewing options. 2. Provide ongoing monitoring, due diligence and recommendations of managers and funds. C. Performance Evaluation 1. Facilitate the selection of appropriate performance benchmarks for each asset class and each manager and fund. 2. Assist in developing composite indices for the Trust to measure total fund performance related to an established target asset mix. Analyze actual performance relative to the composite indices on an ongoing basis. 3. Provide timely quarterly performance analysis of the Trust’s assets to assist in determining whether or not investment policies are being followed and whether investment goals are being achieved. 4. Provide performance attribution for each manager and fund and analyze individual and aggregate risk positions of the managers/funds on a periodic basis. 5. Evaluate manager and fund performance and consistency relative to investment guidelines and established benchmarks. Advise on manager and fund retention/termination and assist in developing formal manager and fund review process. 6. Assist the Trustees with negotiating appropriate management fees and with monitoring and evaluating transaction costs and efficiency. D. On-site Consultation and Assistance 1. Meet quarterly (and, as needed) with Trustees to review performance, assess the investment program and make recommendations. 2. Assist staff and the Trustees with fiduciary education and adoption of related best practices. Keep the Trustees abreast of new developments in investment management techniques by making available ongoing research, topical papers and memoranda on current issues of interest to institutional investors.
